COMM 101 Lecture Notes - Lecture 9: Management Accounting, Marginal Cost, Fixed Cost
35 views1 pages
Offshore (Foregin production @ cheap price) vs Outsource (When somebody makes something for you)
Accounting – Management vs Investing Accounting
Management Accounting – Used for management – Focus on Future – Tabulation of Reports – Somply
with the Rule Book (GAAP) Generally accepted accounting principles
Total Fixed Cost / Profit per unit
Is this a tool a financial accounting tool or a mangement accounting tool?
Implications: Jaguar is adding a night shift
A relevant cost is a cost that changes between alternatives
When is a fixed cost relevant to a decision?
When should the only cost be considered as the marginal cost?
Getting the order right:
Vision: BHAG – long time view
Objective or goals – To acheieve vision
Strategies – long term
Tactics – short tem
Levels of strategy